<PAGE> 1
SEMIANNUAL REPORT JUNE 30, 1997
OPPENHEIMER BOND FUND FOR GROWTH
[PHOTO]
BOND FUND
FOR GROWTH
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - The Fund outperformed the GS 100 Convertible Index as of June 30, 1997.
- - The key to success for many of our convertible holdings was the strong equity
market. That's because convertibles tend to follow the trends of their issuers'
underlying common stocks, rather than fluctuations in interest rates.
- - We seek total return through a combination of investments in convertible
securities, which have some of the advantages of both stocks and bonds.
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview with the Fund's Managers
10 Statement of Investments
22 Statement of Assets & Liabilities
24 Statement of Operations
25 Statements of Changes in Net Assets
26 Financial Highlights
28 Notes to Financial Statements
38 Officers & Trustees
40 Information & Services
<TABLE>
<CAPTION>
- -----------------------------------
TOTAL RETURNS
- -----------------------------------
FOR THE PERIOD ENDED 6/30/97(1)
<S> <C>
CLASS A
6 months 1 year
10.09% 16.33%
- -----------------------------------
CLASS B
6 months 1 year
9.69% 15.46%
- -----------------------------------
CLASS C
6 months 1 year
9.62% 15.40%
- -----------------------------------
CLASS M
6 months 1 year
9.77% 15.71%
- -----------------------------------
</TABLE>
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account. Total returns for the 6-month period are cumulative and are not
annualized.
2 Oppenheimer Bond Fund for Growth
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Bond Fund for Growth
DEAR SHAREHOLDER,
- --------------------------------------------------------------------------------
I'd like to welcome you to the premier issue of our newly redesigned
shareholder reports. As you can see, we've changed the format to allow easier
access to the information you need to monitor your investments. Some notable
additions are "at-a-glance" report highlights and charts that let you quickly
assess how your Fund has performed. On the following pages, your portfolio team
discuss their current investment thinking, your Fund's strategies, and
performance. Before these commentaries, I'd like to share a few global
observations.
As we consider the world's financial markets over the past six months,
some global trends emerge. For example, inflation has hit its lowest level in
three decades worldwide, which has helped spur many bullish financial markets.
The United States has been a beneficiary of this low-inflation environment, as
well as of a strong dollar, robust corporate earnings and a healthy economy.
However, many financial analysts are now concerned that the United States has
reached a point in the business cycle where earnings could decline because
companies are unable to further reduce costs.
On the other hand, a wave of corporate restructuring throughout Europe has
resulted in some exciting changes and opportunities. Because a similar
restructuring took place in the United States ten years ago, European companies
have been able to enjoy the benefit of hindsight by following our footsteps.
Latin America, too, has begun to shift its economies more toward the U.S.
capitalist model and has reported positive earnings growth along the way.
With major changes occurring in today's economies around the globe, it's
more important than ever to maintain a diversified portfolio across different
countries and market sectors. Now is the time to speak to your financial
adviser to ensure that your assets are allocated properly, so you have the
opportunity to benefit from investments in both domestic and international
funds. It's important to remember that investing abroad can involve greater
risk and expenses--including political and economic uncertainties--and should
be undertaken with a long-term approach in mind.
To keep in touch with our views on the markets, visit our website,
WWW.OPPENHEIMERFUNDS.COM, where you can access your account information and
fund performance data, 24 hours a day. The site also features prospectuses,
timely market updates and insightful commentaries. Our new shareholder reports
and presence on the Internet are just two examples of our commitment to keeping
you well informed.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill July 22, 1997
3 Oppenheimer Bond Fund for Growth
<PAGE> 4
PERFORMANCE UPDATE
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------
AVG ANNUAL TOTAL RETURNS
- ---------------------------------------------
For the Period Ended 6/30/97(1)
<S> <C> <C>
CLASS A
Since
1 year 5 year Inception
9.65% N/A 13.70%
- ---------------------------------------------
CLASS B
Since
1 year 5 year Inception
10.46% N/A 14.86%
- ---------------------------------------------
CLASS C
Since
1 year 5 year Inception
14.40% N/A 13.63%
- ---------------------------------------------
CLASS M
Since
1 year 5 year Inception
11.95% 15.66% 10.39%
- ---------------------------------------------
</TABLE>
Oppenheimer Bond Fund for Growth performed very well over the past six months.
The Fund's positive returns can be attributed to its heavy convertible bond
weighting. Because convertible bonds possess a "hybrid" nature, that is, they
act as both a bond and a stock, investors were able to limit their risk by
owning a quality fixed-income product while benefiting from the strength of the
equity market.
GROWTH OF $10,000
Over five years
(without sales charges)(2)
<TABLE>
<CAPTION>
Oppenheimer Bond Fund GS 100
for Growth Convertible Index
<S> <C> <C>
6/30/92 10,000 10,000
9/30/92 10,913 10,556
12/31/92 11,788 10,967
3/31/93 12,592 11,729
6/30/93 12,773 12,182
9/30/93 13,895 12,504
12/31/93 14,292 12,846
3/31/94 14,505 12,711
6/30/94 14,154 12,397
9/30/94 14,845 12,820
12/31/94 14,132 12,222
3/31/95 15,094 13,256
6/30/95 16,301 14,433
9/30/95 17,619 15,239
12/31/95 17,810 15,587
3/31/96 18,142 16,530
6/30/96 18,494 15,865
9/30/96 18,861 17,372
12/31/96 19,516 17,723
3/31/97 19,870 17,962
6/30/97 21,422 19,632
</TABLE>
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 5/1/95. Class B returns
include the applicable contingent deferred sales charge of 5% (1-year) and 3%
(since inception on 5/1/95). Class C returns include the contingent deferred
sales charge of 1% for the 1-year result. Class C shares were first offered on
3/11/96. Class M returns include the current maximum initial sales charge of
3.25% (since inception on 6/3/86). An explanation of the different performance
calculations is in the Fund's prospectus. Class B and C shares are subject to
an annual 0.75% asset-based sales charge and Class M shares are subject to an
annual 0.50% asset-based sales charge.
2. Results of a hypothetical $10,000 investment in Class M shares on June 30,
1992. The GS (Goldman Sachs) 100 Convertible Index is a broad-based unmanaged
convertible index, and cannot be purchased directly by investors. Convertible
securities are subject to credit risks described in the prospectus, and may not
perform as well as stocks in rising markets. Past performance does not
guarantee future results.
4 Oppenheimer Bond Fund for Growth
<PAGE> 5
PORTFOLIO REVIEW
- -------------------------------------------------------------------------------
Oppenheimer Bond Fund for Growth is for investors looking for income plus
built-in growth potential.
WHAT WE LOOK FOR
- - Convertible securities with both good upside potential and reduced downside
risk.
- - Companies with strong balance sheets, anticipated strong cash flow, and
interest or dividend coverage at good values.
- - Smaller companies that often provide better values.
- - Companies with low production costs.
- - Securities that can provide equity-like returns, without excessive volatility.
<TABLE>
<CAPTION>
SECTOR BREAKDOWNS
(Percentage of net assets)(3)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Technology 24.7% Financial 10.4%
- -----------------------------------------------------------------------------
Consumer Cyclicals 23.0 Utilities 4.7
- -----------------------------------------------------------------------------
Consumer Non-Cyclicals 14.9 Energy 3.3
- -----------------------------------------------------------------------------
Industrial 11.1 Basic Materials 2.6
- -----------------------------------------------------------------------------
</TABLE>
3. Sector weightings are as of 6/30/97, and are subject to change.
5 Oppenheimer Bond Fund for Growth
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- -------------------------------------------------------------------------------
"Convertible equity securities FLUCTUATED substantially LESS than stocks
during the period."
HOW HAS THE FUND PERFORMED DURING THE FIRST HALF OF 1997?
Oppenheimer Bond Fund for Growth performed as it was designed to during the
period, investing in convertible bonds (fixed-income securities convertible
into the issuers' common stocks) that provided much of the performance
potential of their underlying equities with significantly less volatility. As a
result, the Fund's Class A shares outperformed comparable fixed-income
securities but trailed the stock market on its way to delivering a cumulative
total rate of return, before sales charges are considered, of 10.09%(1) for the
six-month period ended June 30, 1997.
Just as important, shares of the Fund were significantly less volatile
during the period than the Standard & Poor's 500, a popular, unmanaged index of
large-capitalization stocks. These results are consistent with our strategy of
finding convertible securities that provide participation in most of the gains
of rising markets while attempting to protect shareholders from the full extent
of market declines.
HOW DID THE MARKET FOR CONVERTIBLE SECURITIES PERFORM DURING THE PERIOD?
Convertible securities have done quite well on a risk-adjusted basis so far
this year, especially when compared to stocks and bonds. As you're probably
aware, the stock market experienced heightened volatility in March and April,
declining nearly 10% before rallying strongly and setting new records. The bond
market also experienced pronounced fluctuations. Fixed-income prices fell when
the Federal Reserve Board raised short-term interest rates in an attempt to
forestall an acceleration of inflation, and then rose when investors realized
that inflationary
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
6 Oppenheimer Bond Fund for Growth
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Ted Everett
Mike Rosen (Portfolio
Manager)
pressures are likely to remain benign. In contrast, convertible equity
securities traded in a relatively narrow range, fluctuating substantially less
than stocks during the period.
We were particularly pleased that convertibles held up well during the
stock market correction, declining only slightly from their highest prices of
the period to their lowest. Oppenheimer Bond Fund for Growth did even better
during the correction. We attribute the Fund's ability to resist the market
decline to our disciplined philosophy of sticking to convertible securities.
The Fund does not generally hold common stock positions long after conversion
because of their low or nonexistent yields and lack of protection against
declines. As a result, most of the Fund's holdings were not significantly
affected by the market's downward move, and fundamentals remained intact.
DID THE FEDERAL RESERVE'S MOVE TO RAISE KEY SHORT-TERM INTEREST RATES AFFECT
THE FUND?
Unlike most fixed-income securities, the Fund was not significantly affected by
the Fed's shift toward a tighter monetary policy. Modestly higher short-term
interest rates are intended to slow the nation's economic growth to levels at
which inflationary pressures are not likely to be a problem. Despite their
competitively high yields, convertible securities are far less interest-rate
sensitive than bonds of comparable quality and maturity, making them attractive
investments in virtually all interest-rate environments. Instead, the prices of
convertible securities tend to correlate with the performance of their issuers'
equity securities but generally with less volatility.
7 Oppenheimer Bond Fund for Growth
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
"Our convertible holdings helped us participate in some of the GAINS of the
rising markets..."
HOW DID YOU MANAGE THE FUND DURING THE PERIOD?
First, we were careful to maintain the Fund's broad diversification among
issuers, industries and economic sectors. The aim of diversification is to
reduce the risks that setbacks in any single holding might affect the entire
portfolio. While the balance among industries and economic sectors remained
relatively unchanged over the last six months, the mix of individual securities
within each sector changed considerably. Most significantly, some of our
positions were called or redeemed by their issuers, and we sold others when
they reached their target prices. We replaced those holdings with convertible
securities from issuers that we believe will be able to increase earnings and
common stock prices in the future.
WHAT SECURITIES PERFORMED WELL FOR SHAREHOLDERS, AND WHICH ONES WERE
DISAPPOINTMENTS?
Fortunately, the holdings that performed well far outnumbered the
disappointments. Our top performers included the convertible securities of a
British food and distilled spirits conglomerate that recently announced a
merger with a well-known brewer. Another stand-out was a large European
pharmaceutical company formed by a recent merger. On the other hand,
disappointments included the convertible securities of a few smaller U.S.
technology companies whose common stocks were hurt by a general downturn in the
stock market's small-capitalization technology sector.(2)
2. The Fund's portfolio is subject to change.
8 Oppenheimer Bond Fund for Growth
<PAGE> 9
"...while PROTECTING us from the full extent of market declines."
WHAT IS YOUR OUTLOOK FOR THE CONVERTIBLE SECURITIES MARKET AND THE FUND FOR THE
SECOND HALF OF 1997?
Because convertible equity securities tend to follow the trends of their
issuers' underlying common stocks, the convertible market's fortunes are
closely aligned with those of the stock market. We are cautiously optimistic
about both markets' prospects. On the positive side, the influences that have
driven the stock market's advance remain powerful, including moderate economic
growth, healthy corporate earnings, low inflation and rising consumer savings,
especially in retirement plans. On the other hand, experience tells us that no
market rises forever, and that corrections--and more severe
downtrends--inevitably occur from time to time. Therefore, while we believe
that further stock market gains are quite possible, we are prepared for the
possibility that they may not materialize.
We believe that Oppenheimer Bond Fund for Growth is a particularly
suitable investment alternative in uncertain markets such as these. If stocks
rise, convertible securities should help shareholders participate in some of
those gains with less volatility. If stocks fall, convertible securities should
protect shareholders from the full magnitude of the decline by virtue of their
maturity dates and above-average cash flows. Finally, the Fund's broad
diversification may also help provide a cushion during declining markets.
9 Oppenheimer Bond Fund for Growth
<PAGE> 10
STATEMENT OF INVESTMENTS June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==========================================================================================================
<S> <C> <C>
CONVERTIBLE CORPORATE BONDS AND NOTES--66.4%
- ----------------------------------------------------------------------------------------------------------
BASIC MATERIALS--0.5%
- ----------------------------------------------------------------------------------------------------------
METALS--0.5%
- ----------------------------------------------------------------------------------------------------------
Inco, Ltd., 7.75% Cv. Debs., 3/15/16 $ 3,814,000 $ 3,980,596
- ----------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--16.8%
- ----------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--3.8%
Bluegreen Corp., 8.25% Cv. Sub. Debs., 5/15/12 3,635,000 3,071,575
- ----------------------------------------------------------------------------------------------------------
Engle Homes, Inc., 7% Cv. Sub. Nts., 3/1/03 2,750,000 2,598,750
- ----------------------------------------------------------------------------------------------------------
Magna International, Inc., 5% Cv. Sub. Debs., 10/15/02 7,000,000 8,404,410
- ----------------------------------------------------------------------------------------------------------
MascoTech, Inc., 4.5% Cv. Sub. Debs., 12/15/03 8,630,000 7,921,650
- ----------------------------------------------------------------------------------------------------------
Rouse Co., 5.75% Cv. Sub. Debs., 7/23/02 1,450,000 1,526,125
- ----------------------------------------------------------------------------------------------------------
U.S. Home Corp., 4.875% Cv. Sub. Debs., 11/1/05 7,000,000 6,585,040
-----------
30,107,550
- ----------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--4.7%
Boston Chicken, Inc.:
7.75% Cv. Sub. Debs., 5/1/04 3,000,000 2,722,290
Zero Coupon Sub. LYONs, 6.62%, 6/1/15(1) 8,000,000 1,777,520
- ----------------------------------------------------------------------------------------------------------
Hudson Hotels Corp., 7.5% Cv. Sub. Debs., 7/1/01(2)(3) 7,500,000 7,200,000
- ----------------------------------------------------------------------------------------------------------
Marriott International, Inc.:
Zero Coupon Sub. LYONs, 3.93%, 3/25/11(1) 3,000,000 1,829,040
Zero Coupon Sub. LYONs, 4.25%, 3/25/11(1)(4) 7,000,000 4,267,760
- ----------------------------------------------------------------------------------------------------------
Outboard Marine Corp., 7% Cv. Debs., 7/1/02 2,000,000 2,002,500
- ----------------------------------------------------------------------------------------------------------
Speedway Motorsports, Inc., 5.75% Cv. Sub. Debs., 9/30/03 4,000,000 3,905,720
- ----------------------------------------------------------------------------------------------------------
Time Warner, Inc.:
Zero Coupon Sr. Exchangeable LYONs, 6.22%, 12/17/12
(Exchangeable for Shares of Hasbro Common Stock)(1) 5,000,000 1,976,700
Zero Coupon Sr. LYONs, 4.84%, 6/22/13(1) 15,000,000 6,980,250
- ----------------------------------------------------------------------------------------------------------
WMS Industries, Inc., 5.75% Cv. Sub. Debs., 11/30/02 4,000,000 4,604,680
-----------
37,266,460
- ----------------------------------------------------------------------------------------------------------
MEDIA--3.4%
Graphic Industries, Inc., 7% Cv. Sub. Debs., 5/15/06 4,400,000 4,158,000
- ----------------------------------------------------------------------------------------------------------
Hollinger, Inc., Zero Coupon Cv. Sub. LYONs, 6.32%, 10/5/13(1) 10,000,000 3,737,500
- ----------------------------------------------------------------------------------------------------------
Omnicom Group, Inc.:
4.25% Cv. Sub. Debs., 1/3/07 2,000,000 2,429,040
4.25% Cv. Sub. Debs., 1/3/07(4) 2,000,000 2,429,040
- ----------------------------------------------------------------------------------------------------------
Rogers Communications, Inc.:
2% Cv. Sr. Debs., 11/26/05 3,800,000 2,128,000
Zero Coupon Cv. Sr. LYONs, 5.88%, 5/20/13(1) 6,855,000 2,840,918
- ----------------------------------------------------------------------------------------------------------
Scantron Corp., 6.75% Cv. Sub. Debs., 6/1/11
(Cv. into Common Stock of John H. Harland Co.) 1,381,000 1,387,256
- ----------------------------------------------------------------------------------------------------------
Thomas Nelson, Inc., 5.75% Cv. Sub. Nts., 11/30/99 4,000,000 4,062,520
- ----------------------------------------------------------------------------------------------------------
Times Mirror Co., Zero Coupon Sub. LYONs, 4.75%, 4/15/17(1) 8,000,000 3,257,280
-----------
26,429,554
</TABLE>
10 Oppenheimer Bond Fund for Growth
<PAGE> 11
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: GENERAL--0.4%
Travel Ports of America, Inc.:
8.5% Cv. Sr. Sub. Debs., 1/15/05(2)(3) $ 1,750,000 $ 1,972,635
- ----------------------------------------------------------------------------------------------------------
8.5% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S)(2)(3) 950,000 1,070,859
-----------
3,043,494
- ----------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--4.5%
Ben Franklin Retail Stores, Inc., 7.5% Cv. Sub. Nts., 6/1/03(2)(3)(5) 2,800,000 280
- ----------------------------------------------------------------------------------------------------------
Comtrad Holdings, Inc., 5% Cv. Nts., 7/8/99
(Cv. into Common Stock of CHS Electronics, Inc.)(2)(3) 3,236,000 4,012,640
- ----------------------------------------------------------------------------------------------------------
Corporate Express, Inc., 4.5% Cv. Nts., 7/1/00 7,000,000 6,273,260
- ----------------------------------------------------------------------------------------------------------
CUC International, Inc., 3% Cv. Sub. Nts., 2/15/02(4) 8,000,000 8,468,880
- ----------------------------------------------------------------------------------------------------------
Home Depot, Inc., 3.25% Cv. Sub. Nts., 10/1/01 7,000,000 8,013,110
- ----------------------------------------------------------------------------------------------------------
Nine West Group, Inc., 5.5% Cv. Sub. Nts., 7/15/03(4) 3,000,000 2,751,330
- ----------------------------------------------------------------------------------------------------------
U.S. Office Products Co.:
5.5% Cv. Sub. Nts., 5/15/03 2,000,000 1,860,460
5.5% Cv. Sub. Nts., 5/15/03(4) 4,000,000 3,720,920
-----------
35,100,880
- ----------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--14.0%
- ----------------------------------------------------------------------------------------------------------
BEVERAGES--0.4%
Chock Full O'Nuts Corp., 8% Cv. Sub. Debs., 9/15/06 2,580,000 2,734,800
- ----------------------------------------------------------------------------------------------------------
FOOD--1.3%
Food Lion, 5% Cv. Sub. Debs., 6/1/03(4) 2,000,000 2,125,000
- ----------------------------------------------------------------------------------------------------------
Grand Metropolitan PLC, 6.5% Cv. Nts., 1/31/00(4) 3,000,000 4,214,730
- ----------------------------------------------------------------------------------------------------------
Price/Costco, Inc., 5.75% Cv. Sub. Debs., 5/15/02 4,000,000 4,128,160
-----------
10,467,890
- ----------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.8%
ALZA Corp., 5% Cv. Sub. Debs., 5/1/06 7,000,000 7,096,250
- ----------------------------------------------------------------------------------------------------------
Chiron Corp., 1.9% Cv. Sub. Nts., 11/17/00(4) 3,750,000 3,459,225
- ----------------------------------------------------------------------------------------------------------
NABI, Inc., 6.5% Cv. Sub. Nts., 2/1/03(4) 5,000,000 4,118,750
- ----------------------------------------------------------------------------------------------------------
Roche Holdings, Inc., Zero Coupon Exchangeable LYONs,
6.37%, 5/6/12(1)(4) 30,000,000 13,125,000
- ----------------------------------------------------------------------------------------------------------
Sepracor, Inc., 7% Cv. Sub. Debs., 12/1/02(4)(6) 3,500,000 5,092,500
- ----------------------------------------------------------------------------------------------------------
Swiss Bank Corp., Jersey Branch, 2.5% Nts., 7/3/02
(Exchangeable into the Cash Value of Shares of Novartis AG)(2) 5,000,000 5,050,000
-----------
37,941,725
</TABLE>
11 Oppenheimer Bond Fund for Growth
<PAGE> 12
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES--6.9%
ARV Assisted Living, Inc., 6.75% Cv. Sub. Nts., 4/1/06(4) $2,000,000 $ 1,770,000
- ----------------------------------------------------------------------------------------------------------
Beverly Enterprises, Inc., 5.5% Cv. Sub. Debs., 8/1/18 7,900,000 9,829,970
- ----------------------------------------------------------------------------------------------------------
Bindley Western Industries, Inc., 6.5% Cv. Sub. Debs., 10/1/02 6,050,000 6,821,375
- ----------------------------------------------------------------------------------------------------------
Healthsource, Inc.:
5% Cv. Sub. Nts., 3/1/03 1,000,000 999,510
5% Cv. Sub. Nts., 3/1/03(4) 6,500,000 6,496,815
- ----------------------------------------------------------------------------------------------------------
Huntingdon International Holdings PLC, 7.5% Cv. Debs., 9/25/06(2) 2,910,000 2,313,450
- ----------------------------------------------------------------------------------------------------------
OccuSystems, Inc., 6% Cv. Sub. Nts., 12/15/01(4) 3,000,000 3,497,250
- ----------------------------------------------------------------------------------------------------------
PhyCor, Inc., 4.5% Cv. Sub. Debs., 2/15/03 3,500,000 3,799,915
- ----------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc., 7.5% Cv. Sub. Debs., 8/15/00(2)(3)(5) 500,000 5,000
- ----------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp.:
4.25% Cv. Sub. Nts., 5/31/00 1,450,000 1,559,025
4.25% Cv. Sub. Nts., 5/31/00(4) 4,000,000 4,300,760
- ----------------------------------------------------------------------------------------------------------
Sunrise Assisted Living, Inc., 5.5% Cv. Sub. Nts., 6/15/02(4) 4,000,000 4,510,000
- ----------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 6% Exchangeable Sub. Nts., 12/1/05
(Exchangeable into Common Stock of Vencor, Inc.) 5,000,000 6,335,950
- ----------------------------------------------------------------------------------------------------------
Veterinary Centers of America, Inc.:
5.25% Cv. Sub. Debs., 5/1/06 1,750,000 1,244,058
5.25% Cv. Sub. Debs., 5/1/06 430,000 305,683
-----------
53,788,761
- ----------------------------------------------------------------------------------------------------------
TOBACCO--0.6%
Standard Commercial Corp., 7.25% Cv. Sub. Debs., 3/31/07 4,984,000 4,460,680
- ----------------------------------------------------------------------------------------------------------
ENERGY--2.8%
- ----------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--1.5%
Nabors Industries, Inc., 5% Cv. Sub. Nts., 5/15/06(6) 2,000,000 3,016,260
- ----------------------------------------------------------------------------------------------------------
SEACOR SMIT, Inc.:
5.375% Cv. Sub. Nts., 11/15/06 1,500,000 1,574,910
5.375% Cv. Sub. Nts., 11/15/06(4) 2,500,000 2,624,850
- ----------------------------------------------------------------------------------------------------------
SFP Pipeline Holdings, Inc., 11.16%
Variable Rate Exchangeable Debs., 8/15/10 4,100,000 5,078,875
-----------
12,294,895
- ----------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.3%
Pennzoil Co., 4.75% Sr. Exchangeable Debs., 10/1/03
(Exchangeable into Common Stock of Chevron Corp.)(6) 8,000,000 10,269,360
- ----------------------------------------------------------------------------------------------------------
FINANCIAL--3.1%
- ----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--0.9%
Berkshire Hathaway, Inc., 1% Sr. Exchangeable Nts., 12/3/01
(Exchangeable into Common Stock of Salomon, Inc.) 7,000,000 7,329,840
</TABLE>
12 Oppenheimer Bond Fund for Growth
<PAGE> 13
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE--2.2%
Penn Treaty America Corp., 6.25% Cv. Sub. Nts., 12/1/03(4) $3,250,000 $ 4,071,145
- ----------------------------------------------------------------------------------------------------------
Republic of Italy, 5% PENs, 6/28/01
(Exchangeable into ADSs of Istituto Nazionale del Assicurazioni SpA) 8,500,000 8,755,000
- ----------------------------------------------------------------------------------------------------------
Statesman Group, Inc., 6.25% Cv. Sub. Debs., 5/1/03
(Cv. into Cash at 100.066% of Face) 2,000,000 2,050,000
- ----------------------------------------------------------------------------------------------------------
Westbridge Capital Corp., 7.5% Cv. Sub. Nts., 5/1/04 2,500,000 2,637,500
-----------
17,513,645
- ----------------------------------------------------------------------------------------------------------
INDUSTRIAL--7.8%
- ----------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.5%
MagneTek, Inc., 8% Cv. Sub. Nts., 9/15/01 3,404,000 3,650,790
- ----------------------------------------------------------------------------------------------------------
Recognition International, Inc., 7.25% Cv. Sub. Debs., 4/15/11 8,000,000 8,240,000
-----------
11,890,790
- ----------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.5%
CEMEX, SA de CV, 4.25% Cv. Sub. Nts., 11/1/97 7,000,000 6,965,000
- ----------------------------------------------------------------------------------------------------------
Empresas ICA Sociedad Controladora, SA de CV,
5% Cv. Sub. Debs., 3/15/04 6,000,000 4,778,700
-----------
11,743,700
- ----------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.0%
Thermo TerraTech, Inc.:
4.625% Cv. Sub. Debs., 5/1/03 1,798,000 1,669,892
4.625% Cv. Sub. Debs., 5/1/03(4) 1,500,000 1,396,875
- ----------------------------------------------------------------------------------------------------------
United States Filter Corp., 4.5% Cv. Sub. Nts., 12/15/01 3,500,000 3,423,350
- ----------------------------------------------------------------------------------------------------------
United Waste Systems, Inc., 4.5% Cv. Sub. Nts., 6/1/01(4) 2,000,000 2,753,120
- ----------------------------------------------------------------------------------------------------------
USA Waste Services, Inc., 8.5% Cv. Sub. Debs., 2/1/02 9,387,000 10,284,679
- ----------------------------------------------------------------------------------------------------------
WMX Technologies, Inc., 2% Cv. Sub. Nts., 1/24/05 4,466,000 4,199,469
-----------
23,727,385
- ----------------------------------------------------------------------------------------------------------
MANUFACTURING--1.8%
Hexcel Corp., 7% Cv. Sub. Debs., 8/1/11 4,000,000 3,720,000
- ----------------------------------------------------------------------------------------------------------
Robbins & Meyers, Inc., 6.5% Cv. Sub. Nts., 9/1/03 2,000,000 2,790,000
- ----------------------------------------------------------------------------------------------------------
Solectron Corp., 6% Cv. Sub. Nts., 3/1/06(4) 4,000,000 5,002,160
- ----------------------------------------------------------------------------------------------------------
Synetic, Inc., 5% Cv. Sub. Debs., 2/15/07 3,000,000 2,637,540
-----------
14,149,700
</TABLE>
13 Oppenheimer Bond Fund for Growth
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY--20.3%
- ----------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--5.0%
AST Research, Inc., Zero Coupon Cv. Sub. LYONs, 5.44%, 12/14/13(1) $19,400,000 $ 8,172,250
- ----------------------------------------------------------------------------------------------------------
EMC Corp., 3.25% Cv. Sub. Nts., 3/15/02(4) 6,000,000 6,607,920
- ----------------------------------------------------------------------------------------------------------
HMT Technology, 5.75% Cv. Sub. Nts., 1/15/04(4) 3,000,000 2,572,740
- ----------------------------------------------------------------------------------------------------------
Micron Technology, Inc., 7% Cv. Sub. Nts., 7/1/04(4) 4,000,000 3,992,720
- ----------------------------------------------------------------------------------------------------------
SubMicron Systems Corp., 9% Cv. Sub. Nts., 12/15/97(2)(3) 450,000 116,712
- ----------------------------------------------------------------------------------------------------------
Telxon Corp.:
5.75% Cv. Sub. Nts., 1/1/03 2,500,000 2,290,625
5.75% Cv. Sub. Nts., 1/1/03(4) 2,250,000 2,061,562
- ----------------------------------------------------------------------------------------------------------
3Com Corp., 10.25% Cv. Sub. Nts., 11/1/01(4)(6) 3,000,000 4,194,450
- ----------------------------------------------------------------------------------------------------------
UNISYS Corp., 8.25% Cv. Sub. Nts., 8/1/00 10,000,000 10,250,000
-----------
40,258,979
- ----------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--1.6%
Learning Co., Inc., 5.5% Cv. Sr. Nts., 11/1/00 3,000,000 2,478,120
- ----------------------------------------------------------------------------------------------------------
MacNeal-Schwendler Corp., 7.875% Cv. Sub. Debs., 8/18/04 5,017,000 5,042,085
- ----------------------------------------------------------------------------------------------------------
National Data Corp., 5% Cv. Sub. Nts., 11/1/03 3,500,000 3,704,400
- ----------------------------------------------------------------------------------------------------------
Spectrum Holobyte, Inc., 6.5% Cv. Sub. Nts., 9/15/02(4) 2,000,000 1,450,000
-----------
12,674,605
- ----------------------------------------------------------------------------------------------------------
ELECTRONICS--11.4%
ADT Operations, Inc., Zero Coupon Sub.
Exchangeable LYONs, 6.49%, 7/6/10(1) 3,000,000 2,852,220
- ----------------------------------------------------------------------------------------------------------
California Microwave, Inc., 5.25% Cv. Sub. Nts., 12/15/03 3,470,000 2,828,050
- ----------------------------------------------------------------------------------------------------------
Checkpoint Systems, Inc., 5.25% Cv. Sub. Debs., 11/1/05 6,600,000 6,740,250
- ----------------------------------------------------------------------------------------------------------
Integrated Device Technology, Inc., 5.5% Cv. Sub. Nts., 6/1/02 3,000,000 2,548,140
- ----------------------------------------------------------------------------------------------------------
Laidlaw, Inc., 6% ADT-Linked Cv. Debs., 1/15/99(4) 7,250,000 9,899,295
- ----------------------------------------------------------------------------------------------------------
Park Electrochemical Corp., 5.5% Cv. Sub. Nts., 3/1/06 9,000,000 8,206,920
- ----------------------------------------------------------------------------------------------------------
S3, Inc., 5.75% Cv. Sub. Nts., 10/1/03(4) 5,000,000 4,383,600
- ----------------------------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co., Ltd.,
Zero Coupon CrEDITS, 6.28%, 7/3/02(1)(4) 1,250,000 1,290,625
- ----------------------------------------------------------------------------------------------------------
Thermo Cardiosystems, Inc., 4.75% Cv. Sub. Debs., 5/15/04 2,000,000 2,120,000
- ----------------------------------------------------------------------------------------------------------
Thermo Ecotek Corp.:
Non-Interest Bearing Cv. Sub. Debs., 3/15/01 500,000 563,330
4.875% Cv. Sub. Debs., 4/15/04(4) 5,000,000 5,237,500
- ----------------------------------------------------------------------------------------------------------
Thermo Electron Corp., 4.25% Cv. Sub. Debs., 1/1/03(4) 13,000,000 14,320,930
- ----------------------------------------------------------------------------------------------------------
Thermo Optek Corp., 5% Cv. Sub. Debs., 10/15/00(4) 9,535,000 9,678,025
- ----------------------------------------------------------------------------------------------------------
Thermo Voltek Corp., 3.75% Cv. Sub. Debs., 11/15/00 1,500,000 1,492,500
- ----------------------------------------------------------------------------------------------------------
ThermoQuest Corp., 5% Cv. Sub. Debs., 8/15/00(4) 9,775,000 10,483,687
- ----------------------------------------------------------------------------------------------------------
XILINX, Inc., 5.25% Cv. Sub. Nts., 11/1/02 5,000,000 5,823,050
-----------
88,468,122
</TABLE>
14 Oppenheimer Bond Fund for Growth
<PAGE> 15
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY--2.3%
BroadBand Technologies, Inc.:
5% Cv. Sub. Nts., 5/15/01 $ 2,000,000 $ 1,467,000
5% Cv. Sub. Nts., 5/15/01(4) 1,250,000 916,875
- ----------------------------------------------------------------------------------------------------------
General Instrument Corp., 5% Cv. Jr. Sub. Nts., 6/15/00 10,330,000 11,905,945
- ----------------------------------------------------------------------------------------------------------
Gilat Satellite Networks, Ltd., 6.5% Cv. Sub. Nts., 6/3/04(4) 3,000,000 3,015,000
- ----------------------------------------------------------------------------------------------------------
Porta Systems Corp., Zero Coupon Cv. Sr. Sub. Nts., 10.11%, 1/2/98(1)(2) 1,380,996 738,833
-----------
18,043,653
- ----------------------------------------------------------------------------------------------------------
UTILITIES--1.1%
- ----------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.7%
Consolidated Natural Gas Co., 7.25% Cv. Sub. Debs., 12/15/15 5,000,000 5,386,000
- ----------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.4%
United States Cellular Corp., Zero Coupon Cv. Sub.
LYONs, 6.02%, 6/15/15(1) 9,700,000 3,394,709
-----------
Total Convertible Corporate Bonds and Notes (Cost $495,370,981) 522,467,773
<CAPTION>
SHARES
==========================================================================================================
<S> <C> <C>
COMMON STOCKS--1.3%
- ----------------------------------------------------------------------------------------------------------
American Home Products Corp. 19,040 1,456,560
- ----------------------------------------------------------------------------------------------------------
Danskin, Inc.(2)(3)(7) 159,570 71,806
- ----------------------------------------------------------------------------------------------------------
Fleet Financial Group, Inc. 13,910 879,807
- ----------------------------------------------------------------------------------------------------------
MagneTek, Inc.(7) 37,000 615,125
- ----------------------------------------------------------------------------------------------------------
Orion Capital Corp. 30,001 2,212,574
- ----------------------------------------------------------------------------------------------------------
Phillip Morris Cos., Inc. 66,000 2,928,750
- ----------------------------------------------------------------------------------------------------------
Progressive Bank, Inc. 26,382 831,033
- ----------------------------------------------------------------------------------------------------------
ThermoLase Corp. Units (consisting of one share of
common stock and one redemption right)(7) 49,220 855,198
-----------
Total Common Stocks (Cost $2,964,317) 9,850,853
==========================================================================================================
PREFERRED STOCKS--7.1%
- ----------------------------------------------------------------------------------------------------------
BASIC MATERIALS--0.4%
- ----------------------------------------------------------------------------------------------------------
PAPER--0.4%
James River Corp. of Virginia:
Depositary Shares each representing 1/4 of a
Share of $14.00 Cum. Cv. Exchangeable Preferred Stock, Series L 18,600 1,004,400
Depositary Shares each representing 1/4 of a
Share of $14.00 Cum. Cv. Exchangeable Preferred Stock, Series N(2) 50,000 2,628,100
-----------
3,632,500
</TABLE>
15 Oppenheimer Bond Fund for Growth
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--2.9%
- ----------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.5%
Rouse Company, $3.00 Cv., Series B 75,000 $ 3,618,750
- ----------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.4%
Royal Caribbean Cruises, Ltd., $3.625 Cv., Series A 50,000 3,087,500
- ----------------------------------------------------------------------------------------------------------
MEDIA--1.6%
SFX Broadcasting, Inc., $3.25 Cum. Cv. Exchangeable, Series D(4) 30,000 1,680,000
- ----------------------------------------------------------------------------------------------------------
TCI Pacific Communications, Inc., 5% Cum. Sr. Exchangeable, Class A 107,000 11,021,000
-----------
12,701,000
- ----------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.4%
Danskin, Inc., Depositary Shares each representing 1/100 of a
Share of 10% Cum. Cv. Exchangeable Preferred Stock(2)(3) 1,000 2,776,870
- ----------------------------------------------------------------------------------------------------------
FINANCIAL--1.6%
- ----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.1%
Capstead Mortgage Corp., $1.26 Cum. Cv., Series B 120,000 2,130,000
- ----------------------------------------------------------------------------------------------------------
Phoenix Duff & Phelps Corp., $1.50 Cv., Series A 231,700 6,342,788
-----------
8,472,788
- ----------------------------------------------------------------------------------------------------------
INSURANCE--0.5%
PennCorp Financial Group, Inc., $3.50 Cv., Series II(4) 60,000 3,761,220
- ----------------------------------------------------------------------------------------------------------
TECHNOLOGY--1.9%
- ----------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.0%
Kaman Corp., $3.25 Depositary Shares each
representing 1/4 of a Share of Cv. Preferred Stock, Series 2 90,300 5,485,725
- ----------------------------------------------------------------------------------------------------------
Loral Space & Communications, Ltd., $3.00 Cv., Series C(4) 50,000 2,492,150
-----------
7,977,875
- ----------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--0.9%
Mobile Telecommunication Technologies Corp.:
7.5% Cum. Cv., Series C(2)(7)(8) 5,000 4,262,500
$2.25 Cum. Cv. Exchangeable(4) 121,100 2,966,950
-----------
7,229,450
- ----------------------------------------------------------------------------------------------------------
UTILITIES--0.3%
- ----------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.3%
IXC Communications, Inc., 7.25% Cv. Jr., 3/31/07(2)(8) 20,363 2,413,015
-----------
Total Preferred Stocks (Cost $54,302,882) 55,670,968
</TABLE>
16 Oppenheimer Bond Fund for Growth
<PAGE> 17
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
FACE AMOUNT SEE NOTE 1
==========================================================================================================
<S> <C> <C>
OTHER SECURITIES--19.9%
- ----------------------------------------------------------------------------------------------------------
BASIC MATERIALS--1.7%
- ----------------------------------------------------------------------------------------------------------
CHEMICALS--0.7%
Merrill Lynch & Co., Inc., 6.25% STRYPES, 7/1/01
(IMC Global, Inc.)(9) 150,000 $ 5,625,000
- ----------------------------------------------------------------------------------------------------------
PAPER--1.0%
International Paper Capital Trust, 5.25% Cv. Preferred Securities,
7/20/25 (Cv. into Common Stock of International Paper Co.) 145,000 7,685,000
- ----------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--3.3%
- ----------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.3%
Daimler Benz AG, ADNs representing 5.75%
Sub. Mandatory Cv. Nts., 6/14/02 27,988 2,357,989
- ----------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--2.7%
Credit Suisse First Boston Corp., New York Branch,
3% Disney-Linked Certificate of Deposit, 10/3/01(2) $9,000,000 9,945,000
- ----------------------------------------------------------------------------------------------------------
Mattel, Inc., $.4125 PRIDES, Series C, 7/1/00 465,000 6,568,125
- ----------------------------------------------------------------------------------------------------------
Wendy's Financing I, $2.50 TECONS, Series A, 9/15/26
(Cv. into Common Stock of Wendy's International, Inc.) 75,000 4,396,875
-----------
20,910,000
- ----------------------------------------------------------------------------------------------------------
MEDIA--0.3%
News Corp., Ltd., 5% Exchangeable TOPrS, 11/12/16 (Exchangeable
for Ordinary Shares of British Sky Broadcasting Group PLC)(4) 30,000 2,578,110
- ----------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--0.2%
- ----------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--0.2%
McKesson Financing Trust, 5% Trust Cv. Preferred Securities, 6/1/27
(Cv. into Common Stock of McKesson Corp.)(4) 25,000 1,523,425
- ----------------------------------------------------------------------------------------------------------
ENERGY--0.5%
- ----------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--0.3%
Tosco Financing Trust, 5.75% Trust Cv. Preferred Securities, 12/15/16
(Cv. into Common Stock of Tosco Corp.) 35,000 1,979,670
- ----------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--0.2%
Hvide Capital Trust, $3.50 Trust Cv. Preferred Securities
(Cv. into Class A Common Stock of Hvide Marine, Inc.)(4) 30,000 1,584,360
- ----------------------------------------------------------------------------------------------------------
FINANCIAL--5.2%
- ----------------------------------------------------------------------------------------------------------
BANKS--0.9%
National Australia Bank, Ltd., 7.875% ExCaps
(Exchangeable for Ordinary Shares of National Australia Bank, Ltd.) 247,900 6,925,582
</TABLE>
17 Oppenheimer Bond Fund for Growth
<PAGE> 18
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
FACE AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED FINANCIAL--3.0%
Credit Suisse First Boston Corp., 6% Equity-Linked
Sr. Medium-Term Nts., 4/29/98 (Charles Schwab Corp.)(2)(9) $5,000,000 $ 6,575,000
- ----------------------------------------------------------------------------------------------------------
FINOVA Finance Trust, 5.5% Cv. TOPrS, 12/31/16
(Cv. into Common Stock of FINOVA Group, Inc.) 25,000 1,437,500
- ----------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 7.25% STRYPES, 6/15/99 (SunAmerica, Inc.)(9) 145,000 9,932,500
- ----------------------------------------------------------------------------------------------------------
SunAmerica, Inc., 8.5% PERCS, 10/31/99 125,000 5,453,125
-----------
23,398,125
- ----------------------------------------------------------------------------------------------------------
INSURANCE--1.3%
Allstate Corp., 6.76% Exchangeable Nts., 4/15/98
(Subject to Exchange into Common Stock of The PMI Group, Inc.) 100,000 5,200,000
- ----------------------------------------------------------------------------------------------------------
Frontier Financing Trust, 6.25% Cv. TOPrS, 12/31/16
(Cv. into Common Stock of Frontier Insurance Group, Inc.)(4) 65,000 4,870,905
-----------
10,070,905
- ----------------------------------------------------------------------------------------------------------
INDUSTRIAL--3.2%
- ----------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.4%
Owens-Corning Capital LLC, 6.5% Cv. MIPS
(Cv. into Common Stock of Owens-Corning Fiberglas Corp.)(4) 190,000 10,901,250
- ----------------------------------------------------------------------------------------------------------
MANUFACTURING--1.5%
Elsag Bailey Financing Trust, 5.5% Cv. TOPrS, 12/31/35
(Cv. into Common Stock of Elsag Bailey Process Automation NV) 85,000 3,570,000
- ----------------------------------------------------------------------------------------------------------
Greenfield Capital Trust, $3.00 Cv. TIDES, 3/31/16
(Cv. into Common Stock of Greenfield Industries, Inc.)(4) 70,000 3,250,590
- ----------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6% YEELDS, 8/31/98
(Black & Decker Corp.)(2)(9) 126,646 4,936,661
-----------
11,757,251
- ----------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.3%
CNF Trust I, $2.50 TECONS, Series A, 6/1/12
(Cv. into Common Stock of CNF Transportation, Inc.) 40,000 2,240,000
- ----------------------------------------------------------------------------------------------------------
TECHNOLOGY--2.5%
- ----------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.4%
Credit Suisse First Boston Corp., 6% Equity-Linked Sr.
Medium-Term Nts., 2/17/98 (Intel Corp.)(2)(9) $5,000,000 6,618,750
- ----------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 9.125% YEELDS, 8/1/97
(Micron Technology, Inc.)(9) 56,300 1,484,913
- ----------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 7% PERQS, 11/15/97 (Cisco Systems, Inc.)(9) 67,000 3,182,500
-----------
11,286,163
</TABLE>
18 Oppenheimer Bond Fund for Growth
<PAGE> 19
<TABLE>
<CAPTION>
SHARES OR MARKET VALUE
FACE AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE--0.5%
Vanstar Financing Trust:
6.75% Trust Cv. Preferred Securities, 12/31/49
(Cv. into Common Stock of Vanstar Corp.) 55,000 $ 2,186,250
6.75% Trust Cv. Preferred Securities, 12/31/49
(Cv. into Common Stock of Vanstar Corp.)(4) 35,000 1,391,250
-----------
3,577,500
- ----------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--0.6%
QUALCOMM Financial Trust I, 5.75% Trust Cv. Preferred Securities,
2/24/12 (Cv. into Common Stock of QUALCOMM, Inc.)(4) 100,000 4,825,000
- ----------------------------------------------------------------------------------------------------------
UTILITIES--3.3%
- ----------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.0%
AES Trust I, $2.6875 TECONS, Series A, 3/31/27
(Cv. into Common Stock of The AES Corp.) 100,000 5,887,500
- ----------------------------------------------------------------------------------------------------------
CalEnergy Capital Trust II, 6.25% Trust Cv. Preferred Securities,
2/25/12 (Cv. into Common Stock of CalEnergy Co., Inc.)(4) 40,000 2,236,240
-----------
8,123,740
- ----------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.5%
MCN Energy Group, Inc., 8.75% PRIDES, 4/30/99 90,100 2,500,275
- ----------------------------------------------------------------------------------------------------------
MCN Financing III, 8% FELINE PRIDES Units, 5/16/00 (Each unit
consists of a Stock Purchase Contract and a 7.25% TOPrS, 5/16/02) 30,000 1,631,250
-----------
4,131,525
- ----------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.8%
Bear Stearns Cos., 6% ELPS, 11/25/98 (ACC Corp.)(2)(9) $5,000,004 4,582,504
- ----------------------------------------------------------------------------------------------------------
SBC Communications, Inc., 7.75% DECS
(Subject to exchange into ADSs, each representing
20 Series L Shares of Telefonos de Mexico) 75,000 3,543,750
- ----------------------------------------------------------------------------------------------------------
Sprint Corp., 8.25% DECS, 3/31/00
(Cv. into Shares of Common Stock of SNET Corp.) 156,300 5,646,337
-----------
13,772,591
-----------
Total Other Securities (Cost $138,249,173) 155,253,186
<CAPTION>
UNITS
==========================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ----------------------------------------------------------------------------------------------------------
SubMicron Systems Corp. Wts., Exp. 12/00(2)(3) 27,000 1,620
- ----------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc. Wts., Exp. 1/05(2)(3) 5,300 4,489
-----------
Total Rights, Warrants and Certificates (Cost $0) 6,109
</TABLE>
19 Oppenheimer Bond Fund for Growth
<PAGE> 20
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==========================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--5.7%
- ----------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 5.95%,
dated 6/30/97, to be repurchased at $45,007,438 on 7/1/97,
collateralized by U.S. Treasury Bonds, 12.5%, 8/15/14,
with a value of $11,392,500 and U.S. Treasury Nts.,
5.125%-7.25%, 5/31/98-8/15/04, with a value of
$34,556,235 (Cost $45,000,000) $45,000,000 $ 45,000,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $735,887,353) 100.4% 788,248,889
- ----------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (3,169,357)
----------- ------------
NET ASSETS 100.0% $785,079,532
=========== ============
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
2. Identifies issues considered to be illiquid or restricted--See Note 7 of
Notes to Financial Statements.
3. The security is being valued under procedures established by the Board of
Trustees to determine fair value in good faith.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $214,362,489, or 27.30% of the Fund's net
assets, at June 30, 1997.
5. Non-income producing--issuer is in default of interest payment.
6. A sufficient amount of liquid assets has been designated to cover
outstanding written call options, as follows:
<TABLE>
<CAPTION>
FACE/SHARES EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL DATE PRICE RECEIVED SEE NOTE 1
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Chevron Corp. 40,000 9/97 $75.00 $128,796 $ 95,000
Chevron Corp. 32,800 7/97 70.00 109,712 143,500
- ----------------------------------------------------------------------------------------
Nabors Industries, Inc. 10,000 9/97 20.00 21,574 51,250
- ----------------------------------------------------------------------------------------
Sepracor, Inc. 10,000 7/97 25.00 37,824 20,000
Sepracor, Inc. 50,000 7/97 22.50 185,994 168,750
- ----------------------------------------------------------------------------------------
3COM Corp. 86,000 7/97 50.00 352,158 53,750
-------- --------
$836,058 $532,250
======== ========
</TABLE>
7. Non-income producing security.
8. Dividend is paid in kind.
9. Redeemable in cash at the lesser of a multiple of the issue price or an
amount based on the price of the stated company's common stock at maturity.
20 Oppenheimer Bond Fund for Growth
<PAGE> 21
- --------------------------------------------------------------------------------
All investments of foreign issuers are denominated in U.S. dollars.
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
- -------------------------------------------------------------------------------------
<S> <C> <C>
United States $688,775,235 87.4%
- -------------------------------------------------------------------------------------
Canada 30,990,718 3.9
- -------------------------------------------------------------------------------------
Switzerland 18,175,000 2.3
- -------------------------------------------------------------------------------------
Mexico 15,287,450 1.9
- -------------------------------------------------------------------------------------
United Kingdom 9,106,290 1.2
- -------------------------------------------------------------------------------------
Italy 8,755,000 1.1
- -------------------------------------------------------------------------------------
Australia 6,925,582 0.9
- -------------------------------------------------------------------------------------
Netherlands 3,570,000 0.4
- -------------------------------------------------------------------------------------
Israel 3,015,000 0.4
- -------------------------------------------------------------------------------------
Germany 2,357,989 0.3
- -------------------------------------------------------------------------------------
Taiwan 1,290,625 0.2
------------ -----
Total $788,248,889 100.0%
============ =====
</TABLE>
PORTFOLIO ACRONYMS:
ADNs --American Depositary Notes
ADSs --American Depositary Shares
CrEDITS--Credit Enhanced Debt Indexed to Stock
DECS --Debt Exchangeable for Common Stock
ELPS --Equity-Linked Participation Securities
ExCaps --Exchangeable Capital Units
FELINE --Flexible Equity-Linked Exchangeable Securities
LYONs --Liquid Yield Option Notes
MIPS --Monthly Income Preferred Securities
PENs --Privatization Exchangeable Notes
PERCS --Premium Equity Redemption Cumulative Securities
PERQS --Performance Equity-linked Redemption Quarterly-pay Securities
PRIDES --Preferred Redeemable Increased Dividend Equity Securities
STRYPES--Structured Yield Product Exchangeable for Stock
TECONS --Term Convertible Securities
TIDES --Term Income Deferrable Equity Securities
TOPrS --Trust Originated Preferred Securities
YEELDS --Yield Enhanced Equity-Linked Debt Securities
See accompanying Notes to Financial Statements.
21 Oppenheimer Bond Fund for Growth
<PAGE> 22
STATEMENT OF ASSETS AND LIABILITIES June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================
<S> <C>
ASSETS
Investments, at value (including repurchase agreement of $45,000,000)
(cost $735,887,353)--see accompanying statement $788,248,889
- -----------------------------------------------------------------------------------
Receivables:
Investments sold 8,593,385
Interest and dividends 6,747,709
Shares of beneficial interest sold 3,642,509
- -----------------------------------------------------------------------------------
Other 18,679
------------
Total assets 807,251,171
===================================================================================
LIABILITIES
- -----------------------------------------------------------------------------------
Bank overdraft 56,320
- -----------------------------------------------------------------------------------
Options written, at value (premiums received $836,058)--
see accompanying statement--Note 6 532,250
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 18,540,738
Dividends 1,488,164
Accrued taxes--Note 1 806,841
Shares of beneficial interest redeemed 677,326
Trustees' fees 7,854
Other 62,146
------------
Total liabilities 22,171,639
===================================================================================
Net Assets $785,079,532
============
===================================================================================
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------
Paid-in capital $708,936,675
- -----------------------------------------------------------------------------------
Excess of distributions over net investment income (4,107)
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investments and options 23,481,620
Net unrealized appreciation on investments and options--Note 3 52,665,344
------------
Net assets $785,079,532
============
</TABLE>
22 Oppenheimer Bond Fund for Growth
<PAGE> 23
<TABLE>
==============================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $147,626,860 and 9,613,836 shares of beneficial interest outstanding) $15.36
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.30
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $291,036,273 and 18,927,393 shares of beneficial interest
outstanding) $15.38
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $61,197,138 and 3,987,184 shares of beneficial interest outstanding) $15.35
- ----------------------------------------------------------------------------------------------
Class M Shares:
Net asset value and redemption price per share (based on net assets
of $285,219,261 and 18,576,743 shares of beneficial interest outstanding) $15.35
Maximum offering price per share (net asset value plus sales charge
of 3.25% of offering price) $15.87
</TABLE>
See accompanying Notes to Financial Statements.
23 Oppenheimer Bond Fund for Growth
<PAGE> 24
STATEMENT OF OPERATIONS For the Six Months Ended June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
==================================================================================
<S> <C>
INVESTMENT INCOME
Interest $16,878,814
- ----------------------------------------------------------------------------------
Dividends 2,549,779
-----------
Total income 19,428,593
==================================================================================
EXPENSES
Distribution and service plan fees--Note 4:
Class A 138,777
Class B 1,234,669
Class C 248,956
Class M 1,023,722
- ----------------------------------------------------------------------------------
Management fees--Note 4 1,627,927
- ----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 68,274
Class B 143,328
Class C 24,135
Class M 154,385
- ----------------------------------------------------------------------------------
Registration and filing fees 148,128
- ----------------------------------------------------------------------------------
Accounting service fees--Note 4 104,355
- ----------------------------------------------------------------------------------
Shareholder reports 99,177
- ----------------------------------------------------------------------------------
Custodian fees and expenses 35,059
- ----------------------------------------------------------------------------------
Legal and auditing fees 25,625
- ----------------------------------------------------------------------------------
Trustees' fees and expenses 16,809
- ----------------------------------------------------------------------------------
Other 71,665
- ----------------------------------------------------------------------------------
Interest 25,979
-----------
Total expenses 5,190,970
Less expenses paid indirectly--Note 1 (16,166)
-----------
Net expenses 5,174,804
==================================================================================
NET INVESTMENT INCOME 14,253,789
==================================================================================
REALIZED AND UNREALIZED GAIN
Net realized gain on:
Investments (including premiums on options exercised) 22,944,052
Closing and expiration of options written 1,291,107
-----------
Net realized gain 24,235,159
- ----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 27,414,006
Options 324,806
-----------
Net change 27,738,812
-----------
Net realized and unrealized gain 51,973,971
==================================================================================
Net Increase in Net Assets Resulting From Operations $66,227,760
===========
</TABLE>
See accompanying Notes to Financial Statements.
24 Oppenheimer Bond Fund for Growth
<PAGE> 25
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996
========================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 14,253,789 $ 19,841,059
- ----------------------------------------------------------------------------------------
Net realized gain 24,235,159 14,006,497
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 27,738,812 7,865,590
------------ ------------
Net increase in net assets resulting from operations 66,227,760 41,713,146
========================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (2,730,526) (2,123,534)
Class B (4,845,507) (4,911,332)
Class C (984,154) (648,607)
Class M (5,693,596) (12,157,589)
- ----------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (2,201,758)
Class B -- (4,975,362)
Class C -- (903,669)
Class M -- (6,479,192)
========================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions--Note 2:
Class A 45,016,935 90,847,491
Class B 61,038,449 175,385,489
Class C 19,060,281 38,234,063
Class M (9,119,280) 29,022,434
========================================================================================
NET ASSETS
Total increase 167,970,362 340,801,580
- ----------------------------------------------------------------------------------------
Beginning of period 617,109,170 276,307,590
------------ ------------
End of period (including excess of distributions over net
investment income of $4,107 and $4,113, respectively) $785,079,532 $617,109,170
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
25 Oppenheimer Bond Fund for Growth
<PAGE> 26
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------------------ --------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 1995(3) (UNAUDITED) 1996 1995(3)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.27 $13.96 $13.11 $14.29 $13.98 $13.11
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.34 0.73 0.54 0.29 0.62 0.45
Net realized and unrealized
gain (loss) 1.09 0.65 1.48 1.08 0.65 1.51
-------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations 1.43 1.38 2.02 1.37 1.27 1.96
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.34) (.72) (.68) (.28) (.61) (.60)
Distributions from net realized gain -- (.35) (.49) -- (.35) (.49)
-------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders (.34) (1.07) (1.17) (.28) (.96) (1.09)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.36 $14.27 $13.96 $15.38 $14.29 $13.98
======== ======== ======== ======== ======= =======
===============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 10.09% 10.13% 15.42% 9.69% 9.28% 15.09%
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $147,627 $93,578 $2,502 $291,036 $211,176 $34,465
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $117,659 $41,617 $1,799 $249,377 $113,784 $15,184
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.66%(5) 5.11% 5.63%(5) 3.88%(5) 4.31% 4.82%(5)
Expenses(6) 0.97%(5) 0.98% 1.05%(5) 1.72%(5) 1.75% 1.69%(5)
Expenses (excluding interest)(6)(7) 0.96%(5) 0.97% 1.01%(5) 1.72%(5) 1.73% 1.64%(5)
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 41.71% 52.67% 57.51% 41.71% 52.67% 57.51%
</TABLE>
1. Net of fees and expenses waived or reimbursed by Fielding Management
Company, Inc. (the former manager) which amounted to $.01 per share. Without
reimbursement, the ratios would have been 6.50%, 2.06% and 2.04%, respectively.
2. For the period from March 11, 1996 (inception of offering) to December 31,
1996.
3. For the period from May 1, 1995 (inception of offering) to December 31,
1995.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
26 Oppenheimer Bond Fund for Growth
<PAGE> 27
<TABLE>
<CAPTION>
CLASS C CLASS M
- --------------------------- --------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, YEAR ENDED JUNE 30,
1997 DECEMBER 31, 1997 YEAR ENDED DECEMBER 31,
(UNAUDITED) 1996(2) (UNAUDITED) 1996 1995 1994 1993 1992(1)
===================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$14.27 $14.03 $14.27 $13.96 $12.20 $13.16 $11.43 $9.37
- -------------------------------------------------------------------------------------------------------------------
0.29 0.50 0.30 0.65 0.70 0.68 0.59 0.69
1.07 0.59 1.08 0.66 2.42 (.81) 1.79 2.15
- -------- ------- ------- -------- ------- ------- ------- -------
1.36 1.09 1.38 1.31 3.12 -0.13 2.38 2.84
- -------------------------------------------------------------------------------------------------------------------
(.28) (.50) (.30) (.65) (.87) (.69) (.65) (.78)
-- (.35) -- (.35) (.49) (.14) -- --
- -------- ------- ------- -------- ------- ------- ------- -------
(.28) (.85) (.30) (1.00) (1.36) (.83) (.65) (.78)
- -------------------------------------------------------------------------------------------------------------------
$15.35 $14.27 $15.35 $14.27 $13.96 $12.20 $13.16 $11.43
======== ======= ======= ======== ======= ======= ======= =======
===================================================================================================================
9.62% 7.74% 9.77% 9.58% 26.00% (1.12)% 21.23% 31.19%
===================================================================================================================
$61,197 $38,312 $285,219 $274,043 $239,341 $126,691 $69,375 $10,241
- -------------------------------------------------------------------------------------------------------------------
$50,314 $18,550 $276,710 $264,936 $181,719 $106,829 $36,923 $7,369
- -------------------------------------------------------------------------------------------------------------------
3.91%(5) 4.32%(5) 4.12%(5) 4.59% 5.12% 5.24% 4.70% 6.62%
1.70%(5) 1.68%(5) 1.47%(5) 1.58% 1.58% 1.66% 1.78% 1.93%
1.70%(5) 1.67%(5) 1.47%(5) 1.55% 1.56% 1.65% 1.75% 1.91%
- -------------------------------------------------------------------------------------------------------------------
41.71% 52.67% 41.71% 52.67% 57.51% 52.82% 88.66% 80.09%
</TABLE>
5. Annualized.
6. Beginning in fiscal 1995, the expense ratios reflect the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
7. During the periods shown above, the Fund's interest expense was
substantially offset by the incremental interest income generated on bonds
purchased with borrowed funds.
8. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended June 30, 1997 were $382,171,108 and $279,211,121,
respectively.
Per share information has been determined based on average shares outstanding
for the period.
See accompanying Notes to Financial Statements.
27 Oppenheimer Bond Fund for Growth
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Bond Fund for Growth (the Fund), a portfolio of the Bond Fund
Series, is registered under the Investment Company Act of 1940, as amended, as
a non-diversified, open-end management investment company. The Fund's
investment objective is to seek a high level of total return on its assets
through a combination of current income and capital appreciation. The Fund's
investment adviser is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B, Class C and Class M shares. Class A and Class M shares are
sold with a front-end sales charge. Class B and Class C shares may be subject
to a contingent deferred sales charge. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has
its own distribution and/or service plan, expenses directly attributable to a
particular class and exclusive voting rights with respect to matters affecting
a single class. Class B shares will automatically convert to Class A shares six
years after the date of purchase. The following is a summary of significant
accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted equity securities
for which such information is regularly reported are valued at the last sale
price of the day or, in the absence of sales, at values based on the closing
bid or the last sale price on the prior trading day. Long-term debt securities
are valued by a portfolio pricing service approved by the Board of Trustees.
Such securities which cannot be valued by the approved portfolio pricing
service are valued using dealer-supplied valuations provided the Manager is
satisfied that the firm rendering the quotes is reliable and that the quotes
reflect current market value. Short-term "money market type" debt securities
having a remaining maturity of 60 days or less are valued at cost (or last
determined market value) adjusted for amortization to maturity of any premium
or discount. Options are valued based upon the last sale price on the principal
exchange on which the option is traded or, in the absence of any transactions
that day, the value is based upon the last sale price on the prior trading date
if it is within the spread between the closing bid and asked prices. If the
last sale price is outside the spread, the closing bid is used. Securities for
which market quotations are not readily available are valued at fair value
under consistently applied procedures established by the Board of Trustees to
determine fair value in good faith.
28 Oppenheimer Bond Fund for Growth
<PAGE> 29
================================================================================
SECURITY CREDIT RISK. The Fund invests in high yield securities, which may be
subject to a greater degree of credit risk, greater market fluctuations and
risk of loss of income and principal, and may be more sensitive to economic
conditions than lower yielding, higher rated fixed income securities. The Fund
may not invest in securities with bond ratings of less than C at the time of
purchase nor may it invest in securities in default at the time of purchase. At
June 30, 1997, securities with an aggregate market value of $5,280,
representing less than 0.01% of the Fund's net assets, were in default.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. During 1995, the Fund
acquired all of the assets and liabilities of another investment company which
did not distribute its net investment income or realized gains and was taxed as
a C corporation. Accordingly, an accrued tax liability was assumed by the Fund
on the date of the acquisition. As of June 30, 1997, the remaining accrued tax
liability for net unrealized gains on investments at the time of the
acquisition was $806,841.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends separately
for Class A, Class B, Class C and Class M shares from net investment income
each day the New York Stock Exchange is open for business and pay such
dividends quarterly. Distributions from net realized gains on investments, if
any, will be declared at least once each year.
29 Oppenheimer Bond Fund for Growth
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gain (loss) was recorded by
the Fund.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Cost is determined and realized gains and losses are based
upon the specific identification method for both financial statement and
federal income tax purposes. Interest income is recorded on the accrual basis.
In computing net investment income, the Fund accretes original issue discount.
Market discount is accreted at the time of sale (to the extent of the lesser of
the accrued market discount or the disposition gain) and is treated as income,
rather than capital gain.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
30 Oppenheimer Bond Fund for Growth
<PAGE> 31
================================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of shares of beneficial interest of
each class, par value $.01 per share. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30, 1997 YEAR ENDED DECEMBER 31, 1996(1)
------------------------------ -------------------------------
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 3,704,607 $ 54,523,014 6,494,619 $ 92,520,655
Dividends and distributions
reinvested 148,723 2,223,904 249,431 3,554,945
Redeemed (796,685) (11,729,983) (366,014) (5,228,109)
---------- ------------ ---------- ------------
Net increase 3,056,645 $ 45,016,935 6,378,036 $ 90,847,491
========== ============ ========== ============
- ------------------------------------------------------------------------------------------------
Class B:
Sold 4,685,522 $ 68,812,952 12,294,846 $175,175,363
Dividends and distributions
reinvested 264,978 3,961,625 577,315 8,234,848
Redeemed (798,749) (11,736,128) (561,285) (8,024,722)
---------- ------------ ---------- ------------
Net increase 4,151,751 $ 61,038,449 12,310,876 $175,385,489
========== ============ ========== ============
- ------------------------------------------------------------------------------------------------
Class C:
Sold 1,466,591 $ 21,483,603 2,679,311 $ 38,154,738
Dividends and distributions
reinvested 53,681 801,618 91,900 1,310,288
Redeemed (218,572) (3,224,940) (85,727) (1,230,963)
---------- ------------ ---------- ------------
Net increase 1,301,700 $ 19,060,281 2,685,484 $ 38,234,063
========== ============ ========== ============
- ------------------------------------------------------------------------------------------------
Class M:
Sold 910,579 $ 13,345,961 5,031,985 $ 71,344,923
Dividends and distributions
reinvested 301,159 4,483,479 1,047,016 14,881,567
Redeemed (1,839,110) (26,948,720) (4,018,081) (57,204,056)
---------- ------------ ---------- ------------
Net increase (decrease) (627,372) $ (9,119,280) 2,060,920 $ 29,022,434
========== ============ ========== ============
</TABLE>
1. For the year ended December 31, 1996 for Class A, Class B and Class M shares
and for the period from March 11, 1996 (inception of offering) to December 31,
1996 for Class C shares.
31 Oppenheimer Bond Fund for Growth
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At June 30, 1997, net unrealized appreciation on investments and options
written of $52,665,344 was composed of gross appreciation of $70,447,604 and
gross depreciation of $17,782,260.
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.625% on the
first $50 million of average annual net assets, 0.50% of the next $250 million,
and 0.4375% on net assets in excess of $300 million.
Accounting fees paid to the Manager were in accordance with the
accounting services agreement with the Fund which provides for an annual fee of
$12,000 for the first $30 million of net assets and $9,000 for each additional
$30 million of net assets.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund and for other
registered investment companies. The Fund pays OFS an annual maintenance fee of
$24.12 for each Class A and Class M shareholder account and $26.02 for each
Class B and Class C shareholder account.
For the six months ended June 30, 1997, commissions (sales
charges paid by investors) on sales of Class A and Class M shares totaled
$837,074 and $373,117, of which $268,059 and $43,783, respectively, was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by affiliated broker/dealers. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $2,634,401 and $202,817, of which $59,050 and $6,790,
respectively, were paid to an affiliated broker/dealer. During the six months
ended June 30, 1997, OFDI received contingent deferred sales charges of
$210,376 and $11,725, respectively, upon redemption of Class B and Class C
shares as reimbursement for sales commissions advanced by OFDI at the time of
sale of such shares.
32 Oppenheimer Bond Fund for Growth
<PAGE> 33
================================================================================
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI for a
portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed 0.25% of the average annual net
assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended June 30, 1997, OFDI paid $12,934 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
The Fund has adopted compensation type Distribution and Service
Plans for Class B and Class C shares to compensate OFDI for its services and
costs in distributing Class B and Class C shares and servicing accounts. Under
the Plans, the Fund pays OFDI an annual asset-based sales charge of 0.75% per
year on Class B and Class C shares, as compensation for sales commissions paid
from its own resources at the time of sale and associated financing costs. OFDI
also receives a service fee of 0.25% per year as compensation for costs
incurred in connection with the personal service and maintenance of accounts
that hold shares of the Fund, including amounts paid to brokers, dealers, banks
and other financial institutions. Both fees are computed on the average annual
net assets of Class B and Class C shares, determined as of the close of each
regular business day. During the six months ended June 30, 1997, OFDI retained
$1,152,660 and $229,437, respectively, as compensation for Class B and Class C
sales commissions and service fee advances, as well as financing costs. If the
Plans are terminated by the Fund, the Board of Trustees may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain expenses
it incurred before the Plans were terminated. At June 30, 1997, OFDI had
incurred unreimbursed expenses of $8,779,866 for Class B and $660,413 for Class
C.
33 Oppenheimer Bond Fund for Growth
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted a reimbursement type Distribution and Service Plan for
Class M shares to reimburse OFDI for its services and costs in distributing
Class M shares and servicing accounts. Under the Plan, the Fund pays OFDI an
annual asset-based sales charge of 0.50% per year on Class M shares. OFDI also
receives a service fee of 0.25% per year to reimburse dealers for providing
personal services for accounts that hold Class M shares. OFDI may pay a
portion of the asset-based sales charge which it receives from the Fund
to provide additional compensation to broker/dealers who sell Class M shares.
Both fees are computed on the average annual net assets of Class M shares,
determined as of the close of each regular business day. During the six months
ended June 30, 1997, OFDI paid $3,785 to an affiliated broker/dealer as
reimbursement for Class M personal service and maintenance expenses and
retained $350,784 as reimbursement for certain Class M sales-related
distribution expenses.
================================================================================
5. BANK BORROWINGS
The Fund may borrow up to 5% of its total assets from a bank to purchase
portfolio securities, or for temporary and emergency purposes. The Fund has
entered into an agreement which enables it to participate with two other
Rochester Division funds managed by the Manager in an unsecured line of credit
with a bank, which permits borrowings up to $70 million, collectively. Interest
is charged to each fund, based on its borrowings, at a rate equal to the New
York Interbank Offer Rate (NIBOR) plus 0.75%. Borrowings are payable on demand.
The Fund had no borrowings outstanding at June 30, 1997. For the
six months ended June 30, 1997, the average monthly loan balance was $922,619
at an average interest rate of 6.033%. The Fund had no borrowings outstanding
at any month-end.
34 Oppenheimer Bond Fund for Growth
<PAGE> 35
================================================================================
6. OPTION ACTIVITY
The Fund may buy put options or write covered call options on portfolio
securities in order to produce incremental earnings or protect against changes
in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options
to hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell
or purchase the underlying security at a fixed price, upon exercise of the
option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option or the cost of the security for
a purchased put option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. Options written are reported as
a liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in buying an option is that the Fund pays a
premium whether or not the option is exercised. The Fund also has the
additional risk of not being able to enter into a closing transaction if a
liquid secondary market does not exist.
35 Oppenheimer Bond Fund for Growth
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
6. OPTION ACTIVITY (CONTINUED)
Written option activity for the six months ended June 30, 1997 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS
--------------------
NUMBER OF AMOUNT OF
OPTIONS PREMIUMS
- -----------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at December 31, 1996 6,552 $ 1,651,120
- -----------------------------------------------------------------------------------
Options written 5,462 1,633,536
- -----------------------------------------------------------------------------------
Options cancelled in closing purchase transactions (2,612) (612,317)
- -----------------------------------------------------------------------------------
Options expired prior to exercise (3,900) (728,462)
- -----------------------------------------------------------------------------------
Options exercised (3,214) (1,107,819)
----- ----------
Options outstanding at June 30, 1997 2,288 $ 836,058
===== ==========
</TABLE>
================================================================================
7. ILLIQUID AND RESTRICTED SECURITIES
At June 30, 1997, investments in securities included issues that are illiquid
or restricted. Restricted securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by
the Board of Trustees as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
15% of its net assets (determined at the time of purchase and reviewed from
time to time) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation at June 30, 1997 was $67,296,724, which represents
8.57% of the Fund's net assets. Information concerning these securities is as
follows:
36 Oppenheimer Bond Fund for Growth
<PAGE> 37
<TABLE>
<CAPTION>
==============================================================================================================
VALUATION
COST PER UNIT AS OF
SECURITY ACQUISITION DATE PER UNIT JUNE 30, 1997
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bear Stearns Cos., 6% ELPS, 11/25/98
(ACC Corp.) 11/15/96 100.00% 91.65%
- -------------------------------------------------------------------------------------------------------------
Ben Franklin Retail Stores, Inc.,
7.5% Cv. Sub. Nts., 6/1/03 6/10/93-9/28/95 86.84% 0.01%
- -------------------------------------------------------------------------------------------------------------
Comtrad Holdings, Inc., 5% Cv. Nts., 7/8/99
(Cv. into Common Stock of CHS Electronics, Inc.) 7/8/96 100.00% 124.00%
- -------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp.,
6% Equity-Linked Sr. Medium-Term Nts.:
2/17/98 (Intel Corp.) 2/9/96 100.00% 132.38%
4/29/98 (Charles Schwab Corp.) 4/24/96 100.00% 131.50%
- -------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp., New York Branch,
3% Disney-Linked Certificate of Deposit, 10/3/01 9/19/96-6/3/97 105.58% 110.50%
- -------------------------------------------------------------------------------------------------------------
Danskin, Inc. Common Stock 3/3/97, 6/2/97 $ 1.96 $ .45
- -------------------------------------------------------------------------------------------------------------
Danskin, Inc., Depositary Shares each
representing 1/100 of a Share of 10% Cum. Cv.
Exchangeable Preferred Stock 8/14/95 $5,000.00 $2,776.87
- -------------------------------------------------------------------------------------------------------------
Hudson Hotels Corp.,7.5% Cv. Sub. Debs., 7/1/01 7/8/96 100.00% 96.00%
- -------------------------------------------------------------------------------------------------------------
Huntingdon International Holdings PLC,
7.5% Cv. Debs., 9/25/06 8/8/96-4/9/97 80.55% 79.50%
- -------------------------------------------------------------------------------------------------------------
IXC Communications, Inc., 7.25% Cv. Jr.
Preferred Stock, 3/31/07 3/25/97, 6/30/97 $ 100.25 $ 118.50
- -------------------------------------------------------------------------------------------------------------
James River Corp. of Virginia,
Depositary Shares each representing
1/4 of a Share of $14.00 Cum. Cv.
Exchangeable Preferred Stock, Series N 8/20/96 $ 45.50 $ 52.56
- -------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6% YEELDS,
8/31/98 (Black & Decker Corp.) 9/5/96 $ 39.48 $ 38.98
- -------------------------------------------------------------------------------------------------------------
Mobile Telecommunication Technologies Corp.,
7.5% Cum. Cv., Series C Preferred Stock 5/31/96 $ 992.50 $ 852.50
- -------------------------------------------------------------------------------------------------------------
Physicians Clinical Laboratory, Inc.,
7.5% Cv. Sub. Debs., 8/15/00 2/16/94 103.00% 1.00%
- -------------------------------------------------------------------------------------------------------------
Porta Systems Corp., Zero Coupon
Cv. Sr. Sub. Nts., 10.11%, 1/2/98 4/1/93--5/26/94 84.36% 53.50%
- -------------------------------------------------------------------------------------------------------------
SubMicron Systems Corp.:
9% Cv. Sub. Nts., 12/15/97 12/11/95 100.00% 25.94%
Wts., Exp. 12/00 12/11/95 $ .00 $ .06
- -------------------------------------------------------------------------------------------------------------
Swiss Bank Corp., Jersey Branch,
2.5% Nts., 7/3/02 (Exchangeable into the
Cash Value of Shares of Novartis AG) 6/19/97 100.00% 101.00%
- -------------------------------------------------------------------------------------------------------------
Travel Ports of America, Inc.:
8.5% Cv. Sr. Sub. Debs., 1/15/05 2/13/95, 8/9/95 100.04% 112.72%
8.5% Cv. Sr. Sub. Debs., 1/15/05 (Reg. S) 6/14/95--8/13/96 111.44% 112.72%
Wts., Exp. 1/05 2/13/95 $ .00 $ .85
</TABLE>
37 Oppenheimer Bond Fund for Growth
<PAGE> 38
OPPENHEIMER BOND FUND TO GROWTH
<TABLE>
<S> <C>
===================================================================================================
OFFICERS AND TRUSTEES Bridget A. Macaskill, Chairman of the Board of Trustees and President
John Cannon, Trustee
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Michael S. Rosen, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Adele A. Campbell, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
===================================================================================================
INVESTMENT ADVISER OppenheimerFunds, Inc.
===================================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
===================================================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
===================================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
===================================================================================================
INDEPENDENT AUDITORS Price Waterhouse LLP
===================================================================================================
LEGAL COUNSEL Kirkpatrick & Lockhart LLP
The financial statements included herein have
been taken from the records of the fund without
examination by the independent accountants. This
is a copy of a report to shareholders of
oppenheimer bond fund for growth. This report
must be preceded or accompanied by a prospectus
of oppenheimer bond fund for growth. For material
information concerning the fund, see the
prospectus.
Shares of oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by
any bank, are not insured by the fdic or any
other agency, and involve investment risks,
including possible loss of the principal amount
invested.
</TABLE>
38 Oppenheimer Bond Fund for Growth
<PAGE> 39
OPPENHEIMERFUNDS FAMILY
<TABLE>
====================================================================================================================
<S> <C> <C>
REAL ASSET FUNDS
- --------------------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
====================================================================================================================
STOCK FUNDS
- --------------------------------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund Capital Appreciation Fund(1) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
====================================================================================================================
STOCK & BOND FUNDS
- --------------------------------------------------------------------------------------------------------------------
Main Street Income & Quest Growth &Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth &Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
====================================================================================================================
BOND FUNDS
- --------------------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
====================================================================================================================
MUNICIPAL FUNDS
- --------------------------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
====================================================================================================================
MONEY MARKET FUNDS(4)
- --------------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
====================================================================================================================
LIFESPAN
- --------------------------------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
39 Oppenheimer Bond Fund for Growth
<PAGE> 40
INFORMATION AND SERVICES
- -------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds.com
- -- we're here to help.
INTERNET
24-hr access to account information
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-2pm ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
affect your investments
1-800-835-3104
[OPPENHEIMERFUNDS LOGO]
RS0345.001.0697 August 30, 1997
